Need help figuring out FD calculation from SBM

[xfactcc]

Hi members,

On 4 December 2022 I booked an FD with SBM to get FD backed Paisabazar Rupay credit card. One year later, on January 2024 I received SMS that credit card has been closed due to non-usage. There was no prior intimation in non-compliance to RBI, escalated, got to RBI BO, got compensation only. A previous post made regarding that you can see here.

Now for FD: It was from 4 December 2022, 15,000 principal, 8% PA, for 735 days, due on 7 December 2024 for auto renewal. On 29 October 2024 I finally gave them cancelled cheque and they sent 16,325. I am sure I have received less.

The breakdown they gave was:


Here's the oringial FD details:



My doubts are:
-Why on specific date 4 June 2024 they 'liquidatd' the FD and changed rate? Unauthorised card closure was 6 months prior.
-No customer consent was sought or given for this liquidation
-can they arbitrarily close the FD on a specific date without authorisation?
-Can they randomly lessen the interest rate on a running FD?
-On 29 October I gave them my cheque, it should have been closed then....

Can anybody tell me how much I was paid less?

If anyone can make sense of it then please do help!

 

[helloworld]

Initial FD Details:

• FD was booked on 4th December 2022 for ₹15,000.
• Rate of interest: 8% PA.
• Tenure: 735 days.
• Maturity amount: ₹17,588 (as per original terms).
• Maturity date: 7th December 2024.

Premature Liquidation Details:

• FD was liquidated on 4th June 2024, citing "inactivity usage of card more than 365 days".
• Interest rate applied post-liquidation: 6.75% reduced further to 5.75% effective interest rate.
• Final payout on 29th October 2024: ₹16,325.

Things you can do..

1. Request for clarification
2. Check terms and conditions
3. Escalate

 

[xfactcc]

• FD was liquidated on 4th June 2024, citing "inactivity usage of card more than 365 days".
• Interest rate applied post-liquidation: 6.75% reduced further to 5.75% effective interest rate.
• Final payout on 29th October 2024: ₹16,325.

What is the function of interest rate after a FD has been closed/liquidated?

Thanks!

 

[helloworld]

What is the function of interest rate after a FD has been closed/liquidated?

Thanks!

number of day you kept that fd ( and rate of interest for those days) - 1% penality.



example: You booked for 1 year at 7.05%, but withdraw at 180 days.

for 180 days, interest supposed to be 5.00%, so they'll consider this 5.00% instead 7.05% because you didn't kept for 1 year.

And as a penality, they'll charge 1% for premature withdrawal.

= 5.00% - 1.00% = 4.00%

this is what you'll get...

Fun Note: You need to pay tax as per your tax slab for these 4.00% interest amount, irrespective of amount.

ex: 4.00% interest = 600rs.
10% tax slab have to pay 60rs.

 

[xfactcc]

number of day you kept that fd ( and rate of interest for those days) - 1% penality.

View attachment 75143

example: You booked for 1 year at 7.05%, but withdraw at 180 days.

for 180 days, interest supposed to be 5.00%, so they'll consider this 5.00% instead 7.05% because you didn't kept for 1 year.

And as a penality, they'll charge 1% for premature withdrawal.

= 5.00% - 1.00% = 4.00%

this is what you'll get...

Fun Note: You need to pay tax as per your tax slab for these 4.00% interest amount, irrespective of amount.

ex: 4.00% interest = 600rs.
10% tax slab have to pay 60rs.

Thank you, this makes sense.

They kept it for exactly 1 year 6 months or 18 months, in that case also their rate is 7.05% wef Nov. Not to mention they closed it randomly at 4 June without any authorisation.

This will help me drag them again.